Why go back to the Uk? Is Spain not cheap enough?

This is an article from the Guardian recently;

House prices in Spain fell by 11.2% in July, the biggest monthly fall since March last year. Overall prices have fallen by 31% since the financial crisis hit in 2008. Spain has an estimated 2 million unsold homes.

Prices have slumped across the board and even in the big cities they are down 11.8% and 11% on the Mediterranean coast. The biggest falls have been in the Balearics and Canary Islands where prices declined in July by 14%. The government's decision to raise VAT from 4% to 10% on house purchases as of next year is expected to depress the market still further.

Estate agents are reluctant to reveal the sort of discounts they are offering but it is a buyer's market. The huge surplus on the costa has rendered many developments effectively worthless and flats near the sea that might have cost upwards of €300,000 (£235,000) can be had for half that.

The average price per square metre in July was €1,606, 8.3% down on a year ago. For a typical two-bedroom flat in town this amounts to an average drop from €113,500 to €105,000 in a year. Flats in big cities that may have cost €400,000 in 2008 can be had for €275,000 now.

The most expensive areas are the Basque country, at over €3,000 per square metre, and Madrid (€2,500) – the cheapest are Castilla-LaMancha (€1,221) and Extremadura (€1,425). As is usually the case, prices are holding up better in the big cities – where there is still some hope of finding work – than in small towns and rural areas.

A combination of falling prices, low interest rates, a weak euro and banks dumping unsold property at a discount means Spain continues to be an attractive option for Britons wanting a holiday or retirement home by the sea.

So, it depends on who writes about the subject. The only thing in common is that prices have fallen since 2007 and it is now a buyers market. Some of the drop in average price could be the Banks offloading their stock due to a new law which required banks to sell off their stock as much as 80% of value. Most of that level of property most expats would not be interested in due to condition and location. There are reasonable properties still for sale in coastal area's for under €50000

 The sale of dwellings to foreigners in Spain has come to a virtual halt, and most experts expect the situation to continue for years to come."

Do people really think this is true?????

I could name 5 or 6 agents that i know well that have had record sales so far this year.

Now i would have never have thought this until 6 months ago but the new buid maket is alive and well.....i could give you several examples of good builders in the area that have new projects on the go at the minute....i visited 3 last week that have sold out the fist phases completely and all to foreigners,this information is widely available to anybody looking in the builders offices at the "sold" pins in the layout plans on the wall.

We have specialised in resales for years,only just this year i have been convinced to show off plan again as i have seen the volume that want this product.

I know everybody likes a bad news story but although the market is nowhere near what it was in the boom there are plenty on foreigners buying.

As a group we sold 7 properties last week over the 3 offices....if that is a virtual halt i cant wait for it to pick up....(just to add,one of the clients bought in the Tornado on Friday)

We took a property on in a great location last week that has 26 viewings in 48 hours and sold on the second day and had two couples literally fighting over it.

The difference between the speculation,guesswork,hearsay,Daily Mail and all other useless sources of balderdash that you see on here is that i can prove all this,the only time i post is when i get wound up by the total poppycock that appears frequently on here.

At the end of the day we all take decisions based on information,in Real estate purchase as in life there are 2 types of people,those that talk about it and those that do it.

Life is too short to listen to the bloke down the pub and people only believe what they want to believe.

and just to comment on the Title....the first six words are question enough??!!

Just to add,have just got this eamil from one of the builders i spoke about,again this is real so make your own assumptions....

Hello,

There’s just 1 Eivissa left on Phase II at the initial launch price of 241.000 €. Remember, prices have gone up on Phase III since we are now including the Ipad controlled Smart Home system (including the Ipad!) on Phase III. If you haven’t seen the Eivissas yet, you can visit the showhouse Monday to Friday from 10am-6pm (we don’t stop for lunch).

Let me know if you need more information on the last 3 bedroom Eivissa on Phase II before it gets sold.

Regards,

An article from Propertyfinder

"When buyers from overseas look at headline statistics about the property market they also need to bear two issues in mind; firstly, price fall statistics are averages and secondly, that they are really describing the internal Spanish market. Even at the peak overseas buyers only accounted for about 10% of all purchases; today that figure is hovering around 5%. Spain has two property markets which are for the most part completely separate, a national one driven by the internal economy and consequently weak and getting weaker, and an overseas one which depends on how other economies are doing. For example, at first glance the figures showing the number of transactions done in the 3rd quarter of 2011 look dire: a 16.8% fall compared to the previous quarter and down 6.3% year on year. However, if the purchases registered to overseas buyers are separated out there is a year on year increase of 24.7%. But given Spain's internal problems it seems highly likely that the domestic market will contract for several more years and trusting in the overseas sector to kick-start a recovery is wishful thinking. And because the statistics refer to a market that is 95% domestic, they will be dire for years to come and tell the overseas buyers more or less nothing."

"the new buid maket is alive and well.....i could give you several examples of good builders in the area that have new projects on the go at the minute....i visited 3 last week that have sold out the fist phases completely and all to foreigners"

Sounds very bullish !!

Georgia, 

                             I could name 5 or 6 agents that i know well that have had record sales so far this year.

Compared with when? The last couple of years:  Well,  sales could not really have gone down on those years I don't think.

A  friend of mine has just sold his Studio.  44,000 Euros gross to a Spanish couple, 5,000 of which will go to the Real Estate Agent !

 At the height of the market his Spanish neighbours with a studio the same as his,  paid 150,000 euros.      That does not sound like good news to me.

Not saying it is bullish, it all depends on location, size of development and price. A development close to the beach with easy access to the major airport and dirt cheap with 100% finance will sell quickly. There are a few of these around but most of them are on golf courses and inland.

Seek and ye shall find, but try making an offer first

"A  friend of mine has just sold his Studio.  44,000 Euros gross to a Spanish couple, 5,000 of which will go to the Real Estate Agent !"

11.4% - do property agents normally pocket that much ???????

Harry if the property is low value, I believe most agents want a fixed fee, they consider it is not worth their while,  "typing up the details,  and printing a few copies"   for just  %5     !!!!

Harry

not bullish,just True...if you fancy a wager that it is true then i will bet you 1,000€ that i will gladly give to the EMAUS charity that we support when i supply the truth.

For a grand for charity i would glady spend a day getting the evidence and posting on here,deal?????

John,

Best figures for 5 years one, agent i know did 22 sales in August and he is a single office set up,again,fancy a bet??? i would happily prove it for another grand for charity??

These development s are not bank owned,not 100% finance but are in great locations.

I am not going to get into an argument over commission and what we do for it,my overheads would choke a donkey,put it like that!

I will happily take on anyones statistics and hearsay with my provable facts,as Jack Nicholson said "truth,you cant handle the truth????"

Our property is up for sale with an agent whose commission is 2% +iva. Some agents charge twice that and more. It seems extortionate to me, compared with UK. On top of that tthere's solicitor's  fees, plus valia, possible capital gains tax. It may be cheap to buy a property in Spain, but it's not cheap to sell it!

 you cant compare comms to the UK agents, and i was an agent in the UK for 15 years.

There is no comparison in the work involved.

Just to add the average house price in the UK is 200k,the average house price we sell is 80k.

I would rather have 2% of the former than 4% of the latter.

"my overheads would choke a donkey,put it like that!"

With great respect, is 5% - 11.4% commission justified despite the choking donkey ??

 Harry,

I have never said i charge anything like that......you seem to have glazed over our bet??

true camposol, bit like a marriage eh cheap to get hitched but divorce wow!

 In the states the standard commission is 5-8%,just as an example.

Atlas and Masa were charging 18% plus here in spain.

Actually, Georgia, I have always wondered how estate agents justify their commission-care to enlighten me?

 I only have 10 mins of my lunch left so John and Harry i will check in tomorrow when no doubt you will have accepted my bet??

"It seems extortionate to me"

It is & might explain the reluctance to justify such fees - as requested by camposol below !

The case below quoted by johnzx of an agent pocketing 11.4% on 60,000E sale is highly inequitable !!!!!

Regards,

Harry

Hi Georgia

Prove them all wrong..... Publish your tax return; that'll show them how busy you are

 Ha ha ha ha....i am not that desperate but i love how they dance around the bet.......

Every froum in the world is the same.....a little bit of knowledge is dangerous....and most people haven't got the cojones to accept the truth (or a challenge) even if it is for orphaned children.

I love how they try to deflect...come on...man up boys!!